Momo Announces Unaudited Financial Results for the Second Quarter of 2019
BEIJING, Aug. 27, 2019 /PRNewswire/ -- Momo Inc. (NASDAQ: MOMO) ("Momo" or the "Company"), a leading mobile social networking platform in China, today announced its unaudited financial results for the second quarter of 2019.
Second Quarter of 2019 Highlights
- Net revenues increased by 32% year over year to RMB4,152.6 million (US$604.9 million*) in the second quarter of 2019.
- Net income attributable to Momo Inc. decreased to RMB731.8 million (US$106.6 million) in the second quarter of 2019 from RMB750.2 million in the same period of 2018. We recognized a total share-based compensation expense of RMB482.5 million (US$70.3 million) in the second quarter of 2019 including a share-based compensation expense of RMB323.7 million (US$47.1 million) regarding certain share options granted to the founders of Tantan Limited ("Tantan"), while the total share-based compensation expense recognized in the same period of 2018 was only RMB134.2 million. In August 2018, Tantan Limited granted 3,578,205 share options to its founders. The share options included a performance condition in which the founders have the right to receive fully vested options immediately upon achieving certain performance condition. During the second quarter of 2019, the performance condition was met and accordingly, we recognized a share-based compensation expense of RMB323.7 million (US$47.1 million) related to those options.
- Non-GAAP net income attributable to Momo Inc. (note 1) increased to RMB1,242.5 million (US$181.0 million) in the second quarter of 2019, from RMB893.2 million in the same period of 2018.
- Diluted net income per American Depositary Share ("ADS") was RMB3.33 (US$0.49) in the second quarter of 2019, compared to RMB3.55 in the same period of 2018.
- Non-GAAP diluted net income per ADS (note 1) was RMB5.60 (US$0.82) in the second quarter of 2019, compared to RMB4.22 in the same period of 2018.
- Monthly Active Users ("MAU") on Momo application were 113.5 million in June 2019, compared to 108.0 million in June 2018.
- Total paying users of our live video service and value-added service, without double counting the overlap, including 3.2 million paying users of Tantan, were 11.8 million for the second quarter of 2019, compared to 11.6 million for the second quarter of 2018, which included 3.1 million paying users of Tantan in June 2018.
* This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.865 to US$1.00, the effective noon buying rate for June 28, 2019 as set forth in the H.10 statistical release of the Federal Reserve Board. |
Recent Development
Tantan's download and payment services were fully restored by July 15, 2019. As of August 25, 2019, the number of paying users of Tantan was 4.1 million.
First Half of 2019 Highlights
- Net revenues increased 33% year over year to RMB7,875.5 million (US$1,147.2 million) for the first half of 2019.
- Net income attributable to Momo Inc. was RMB1,021.1 million (US$148.7 million) for the first half of 2019, compared with RMB1,575.4 million during the same period of 2018.
- Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,152.8 million (US$313.6 million) for the first half of 2019, compared with RMB1,797.0 million during the same period of 2018.
- Diluted net income per ADS was RMB4.71 (US$0.69) for the first half of 2019, compared with RMB7.52 during the same period of 2018.
- Non-GAAP diluted net income per ADS (note 1) was RMB9.75 (US$1.42) for the first half of 2019, compared with RMB8.58 during the same period of 2018.
"The second quarter of 2019 was a good quarter. We continued to deliver strong financial results and make progress across all of our strategic priorities," commented Yan Tang, Chairman and CEO of Momo. "Since the full restoration of its download and payment service in mid-July, Tantan has been recovering with robust momentum across different user and revenue metrics. It demonstrated the strong demand for online dating service in China and Tantan's unique position in this sector. We expect Tantan to become an important driver of the company's growth in the coming few years."
Second Quarter of 2019 Financial Results
Net revenues
Total net revenues were RMB4,152.6 million (US$604.9 million) in the second quarter of 2019, an increase of 32% from RMB3,152.5 million in the second quarter of 2018.
Live video service revenues were RMB3,099.9 million (US$451.5 million) in the second quarter of 2019, an increase of 18% from RMB2,620.9 million during the same period of 2018. The growth in live video revenues was contributed by the increase in quarterly paying users, as well as the increase in average revenues per paying user per quarter.
Value-added service revenues mainly include virtual gift revenues and membership subscription revenues. The total value-added service revenues were RMB948.4 million (US$138.1 million) in the second quarter of 2019, an increase of 169% from RMB352.6 million during the same period of 2018. The year-over-year increase was primarily attributable to the continued growth of the virtual gift business on the Momo application driven by more paying scenarios introduced to enhance the social experience of Momo users, and the consolidation of Tantan's membership subscription revenues for the whole second quarter of 2019, compared to the single month of June 2018 in the second quarter of 2018.
Mobile marketing revenues were RMB76.2 million (US$11.1 million) in the second quarter of 2019, a decrease of 46% from RMB142.0 million during the same period of 2018. The decrease in mobile marketing revenues was due to the decrease in advertisement properties on Momo's platform resulting from the suspension of certain user posting functions.
Mobile games revenues were RMB23.2 million (US$3.4 million) in the second quarter of 2019, a decrease of 33% from RMB34.8 million in the second quarter of 2018. The decrease in mobile game revenues was mainly due to the continued decrease in quarterly paying users of mobile games.
Net revenues from Momo segment increased from RMB3,119.8 million in the second quarter of 2018 to RMB3,865.4 million (US$563.1 million) in the second quarter of 2019, primarily driven by the significant increase in net revenues from live video service and value-added service. Net revenues from Tantan segment increased from RMB31.0 million in the second quarter of 2018 to RMB284.8 million (US$41.5million) in the second quarter of 2019, which mainly included value-added service revenues. Tantan segment has been consolidated since June 2018.
Cost and expenses
Cost and expenses were RMB3,386.8 million (US$493.3 million) in the second quarter of 2019, an increase of 44% from RMB2,356.8 million in the second quarter of 2018. The increase was primarily attributable to: (a) an increase in personnel related costs including share-based compensation expenses, especially the share-based compensation expenses of RMB323.7 million (US$47.1 million) charged related to the options granted to Tantan's founders and the Company's rapidly expanding talent pool; (b) an increase in revenue sharing with broadcasters related to our live video service and virtual gift recipients; (c) an increase in marketing and promotional expenses to attract users and promote our live video services; (d) an increase in infrastructure-related spending, such as bandwidth costs and server depreciation costs, driven by more functions introduced on Momo's platform. The increase was partially offset by a decrease in production cost in connection with television program.
Non-GAAP cost and expenses (note 1) were RMB2,866.7 million (US$417.6 million) in the second quarter of 2019, an increase of 30% from RMB2,210.9 million during the same period of 2018.
Other operating income
Other operating income was RMB161.9 million (US$23.6 million) in the second quarter of 2019, a significant increase from RMB100.1 million during the second quarter of 2018. The increase was mainly due to more government incentives received in the second quarter of 2019.
Income from operations
Income from operations was RMB927.7 million (US$135.1 million) in the second quarter of 2019, compared to RMB895.8 million during the same period of 2018. Income from operations of Momo segment was RMB1,354.4 million (US$197.3 million) in the second quarter of 2019, increasing from RMB1,159.3 million in the second quarter of 2018. Loss from operations of Tantan segment was RMB431.4 million (US$62.8 million) in the second quarter of 2019, compared to loss from operations of RMB97.8 million in the second quarter of 2018. Tantan segment has been consolidated since June 2018.
Non-GAAP income from operations (note 1) was RMB1,447.9 million (US$210.9 million) in the second quarter of 2019, compared to RMB1,041.7 million during the same period of 2018. Non-GAAP income from operations of Momo segment was RMB1,488.5 million (US$216.8 million) in the second quarter of 2019, increasing from RMB1,258.9 million in the second quarter of 2018. Non-GAAP loss from operations of Tantan segment was RMB47.9 million (US$7.0 million) in the second quarter of 2019, compared to non-GAAP loss from operations of RMB51.5 million in the second quarter of 2018. Tantan segment has been consolidated since June 2018.
Income tax expenses
Income tax expenses were RMB283.9 million (US$41.4 million) in the second quarter of 2019, increasing from RMB198.6 million in the second quarter of 2018. The increase was mainly because we generated higher profit in the second quarter of 2019.
Net income
Net income was RMB731.1 million (US$106.5 million) in the second quarter of 2019, compared to RMB748.1 million during the same period of 2018. Net income from Momo segment was RMB1,149.5 million (US$167.4 million) in the second quarter of 2019, increasing from RMB1,008.6 million in the second quarter of 2018. Net loss from Tantan segment was RMB423.2 million (US$61.6 million) in the second quarter of 2019, compared to net loss of RMB94.8 million in the second quarter of 2018, which was mainly due to the share-based compensation expenses of RMB323.7 million (US$47.1 million) charged related to the options granted to Tantan's founders. Tantan segment has been consolidated since June 2018.
Non-GAAP net income (note 1) was RMB1,241.8 million (US$180.9 million) in the second quarter of 2019, compared to RMB891.0 million during the same period of 2018. Non-GAAP net income from Momo segment was RMB1,283.6 million (US$187.0 million) in the second quarter of 2019, increasing from RMB1,108.2 million in the second quarter of 2018. Non-GAAP net loss of Tantan segment was RMB49.1 million (US$7.1 million) in the second quarter of 2019, compared to non-GAAP net loss of RMB51.4 million in the second quarter of 2018. Tantan segment has been consolidated since June 2018.
Net income attributable to Momo Inc.
Net income attributable to Momo Inc. was RMB731.8 million (US$106.6 million) in the second quarter of 2019, compared to RMB750.2 million during the same period of 2018.
Non-GAAP net income (note 1) attributable to Momo Inc. was RMB1,242.5 million (US$181.0 million) in the second quarter of 2019, compared to RMB893.2 million during the same period of 2018.
Net income per ADS
Diluted net income per ADS was RMB3.33 (US$0.49) in the second quarter of 2019, compared to RMB3.55 in the second quarter of 2018.
Non-GAAP diluted net income per ADS (note 1) was RMB5.60 (US$0.82) in the second quarter of 2019, compared to RMB4.22 in the second quarter of 2018.
Cash and cash flow
As of June 30, 2019, Momo's cash, cash equivalents, term deposits and short-term investment totaled RMB12,489.8 million (US$1,819.4 million), compared to RMB11,292.6 million as of December 31, 2018. Net cash provided by operating activities in the second quarter of 2019 was RMB1,422.0 million (US$207.1 million), compared to RMB992.4 million in the second quarter of 2018.
First Half of 2019 Financial Results
Net revenues for the first half of 2019 were RMB7,875.5 million (US$1,147.2 million), an increase of 33% from RMB5,916.9 million in the same period of 2018, primarily driven by the significant increase in net revenues from live video service and value-added service.
Net income attributable to Momo Inc. was RMB1,021.1 million (US$148.7 million) for the first half of 2019, compared to RMB1,575.4 million during the same period of 2018.
Non-GAAP net income attributable to Momo Inc. (note 1) was RMB2,152.8 million (US$313.6 million) for the first half of 2019, compared to RMB1,797.0 million during the same period of 2018.
Diluted net income per ADS was RMB4.71 (US$0.69) during the first half of 2019, compared to RMB7.52 in the same period of 2018.
Non-GAAP diluted net income per ADS (note 1) was RMB9.75 (US$1.42) during the first half of 2019, compared to RMB8.58 in the same period of 2018.
Net cash provided by operating activities was RMB2,597.9 million (US$378.4 million) during the first half of 2019, compared to RMB1,817.9 million in the same period of 2018.
Business Outlook
For the third quarter of 2019, the Company expects total net revenues to be between RMB4.25 billion to RMB4.35 billion, representing an increase of 17% to 19% year over year. These estimates reflect the Company's current and preliminary view, which is subject to change.
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), we use various non-GAAP financial measures that are adjusted from the most comparable GAAP results to exclude share-based compensation and amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to the GAAP results. In addition, our calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP cost and operating expenses, income (loss) from operations, net income (loss)，net income attributable to Momo Inc., and diluted net income per ADS) is adjusted from the most comparable GAAP results to exclude share-based compensation, amortization of intangible assets from business acquisitions, and tax impacts related to the amortization of intangible assets from business acquisitions. A limitation of using these non-GAAP financial measures is that share-based compensation, amortization of intangible assets from business acquisitions and tax impacts related to the amortization of intangible assets from business acquisitions have been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP measures to our U.S. GAAP measures. Please see the reconciliation tables at the end of this earnings release.
Conference Call
Momo's management will host an earnings conference call on Tuesday, August 27, 2019, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong Time on August 27, 2019).
Dial-in details for the earnings conference call are as follows:
International: | +65-6713-5090 |
U.S. Toll Free: | +1-866-519-4004 |
Hong Kong Toll Free: | 800-906601 |
Mainland China: | 4006-208038 |
Passcode: | Momo |
Please dial in 15 minutes before the call is scheduled to begin.
A telephone replay of the call will be available after the conclusion of the conference call through 9:00 a.m. U.S. Eastern Time, September 4, 2019. The dial-in details for the replay are as follows:
International: | +61-2-8199-0299 |
U.S. Toll Free: | +1-855-452-5696 |
Passcode: | 8558826 |
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of Momo's website at http://ir.immomo.com.
About Momo
Momo is a leading mobile social networking platform in China. Momo connects people in a personal and lively way through a revolutionary mobile-based social networking platform. With powerful and precise location-based features, Momo enables users to connect with each other and expand relationships from online to offline. Momo's platform includes the Momo mobile application and a variety of related features, functionalities, tools and services that it provides to users, customers and platform partners. Leveraging its social interest graph engine and analysis of user behavior data, Momo is able to provide users a customized experience based on their social preferences and needs. Momo users can maintain and strengthen their relationships through private and group communication tools, content creation and sharing functions, as well as the offline social activities promoted on Momo's platform. Momo users are also able to enjoy live video on our platform. In addition, in May 2018, Momo completed its acquisition of Tantan, a leading social and dating app for the younger generation. Tantan, whose primary users consist of young Chinese singles, is designed to help its users find and establish romantic connections, as well as meet interesting people.
For investor and media inquiries, please contact:
Momo Inc.
Investor Relations
Phone: +86-10-5731-0538
Email: [email protected]
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: [email protected]
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]
Safe Harbor Statement
This news release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our management quotes and our financial outlook for the third quarter of 2019.
Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the second quarter of 2019 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the third quarter of 2019 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to our ability to retain and grow our user base, our ability to attract and retain sufficiently trained professionals to support our operations, and our ability to anticipate and develop new services and enhance existing services to meet the demand of our users or customers. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations, and prospects, please see our filings with the U.S. Securities and Exchange Commission.
All information provided in this press release and in the attachments is as of the date of the press release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Such information speaks only as of the date of this release.
Momo Inc. | ||||||||||||||
Unaudited Condensed Consolidated Statement of Operations | ||||||||||||||
(All amounts in thousands, except share and per share data) | ||||||||||||||
Three months | First half year | |||||||||||||
ended June 30 | ended June 30 | |||||||||||||
2018 | 2019 | 2019 | 2018 | 2019 | 2019 | |||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Net revenues: | ||||||||||||||
Live video service | 2,620,924 | 3,099,887 | 451,549 | 4,981,038 | 5,789,300 | 843,307 | ||||||||
Value-added service | 352,583 | 948,394 | 138,149 | 587,587 | 1,852,243 | 269,810 | ||||||||
Mobile marketing | 141,984 | 76,208 | 11,101 | 260,842 | 156,937 | 22,860 | ||||||||
Mobile games | 34,782 | 23,240 | 3,385 | 77,010 | 62,248 | 9,067 | ||||||||
Other services | 2,258 | 4,901 | 715 | 10,430 | 14,821 | 2,159 | ||||||||
Total net revenues | 3,152,531 | 4,152,630 | 604,899 | 5,916,907 | 7,875,549 | 1,147,203 | ||||||||
Cost and expenses: | ||||||||||||||
Cost of revenues | (1,720,340) | (2,063,863) | (300,636) | (3,051,980) | (3,937,437) | (573,552) | ||||||||
Research and development | (160,097) | (251,658) | (36,658) | (271,483) | (501,089) | (72,992) | ||||||||
Sales and marketing | (348,722) | (570,609) | (83,119) | (630,430) | (1,194,457) | (173,992) | ||||||||
General and administrative | (127,665) | (500,660) | (72,929) | (237,134) | (1,103,256) | (160,707) | ||||||||
Total cost and expenses | (2,356,824) | (3,386,790) | (493,342) | (4,191,027) | (6,736,239) | (981,243) | ||||||||
Other operating income | 100,075 | 161,901 | 23,584 | 106,979 | 172,855 | 25,179 | ||||||||
Income from operations | 895,782 | 927,741 | 135,141 | 1,832,859 | 1,312,165 | 191,139 | ||||||||
Interest income | 52,547 | 100,175 | 14,592 | 100,452 | 193,953 | 28,252 | ||||||||
Interest expense | (12,436) | (19,315) | (2,814) | (12,436) | (38,304) | (5,580) | ||||||||
Impairment loss on long-term | - | - | - | - | (4,500) | (655) | ||||||||
Income before income tax | 935,893 | 1,008,601 | 146,919 | 1,920,875 | 1,463,314 | 213,156 | ||||||||
Income tax expenses | (198,605) | (283,868) | (41,350) | (369,534) | (447,519) | (65,188) | ||||||||
Income before share of | 737,288 | 724,733 | 105,569 | 1,551,341 | 1,015,795 | 147,968 | ||||||||
Share of income on equity | 10,789 | 6,375 | 929 | 18,915 | 1,871 | 273 | ||||||||
Net income | 748,077 | 731,108 | 106,498 | 1,570,256 | 1,017,666 | 148,241 | ||||||||
Less: net loss attributable to | (2,167) | (669) | (97) | (5,143) | (3,428) | (499) | ||||||||
Net income attributable to | 750,244 | 731,777 | 106,595 | 1,575,399 | 1,021,094 | 148,740 | ||||||||
Net income per share | ||||||||||||||
Basic | 1.85 | 1.76 | 0.26 | 3.92 | 2.46 | 0.36 | ||||||||
Diluted | 1.77 | 1.67 | 0.24 | 3.76 | 2.36 | 0.34 | ||||||||
Weighted average shares | ||||||||||||||
Basic | 405,737,852 | 414,769,943 | 414,769,943 | 402,388,870 | 414,370,874 | 414,370,874 | ||||||||
Diluted | 423,089,714 | 450,480,301 | 450,480,301 | 419,086,110 | 449,410,610 | 449,410,610 | ||||||||
Momo Inc. | |||||||||||||||||||
Unaudited Condensed Consolidated Statement of Comprehensive Income | |||||||||||||||||||
(All amounts in thousands, except share and per share data) | |||||||||||||||||||
Three months | First half year | ||||||||||||||||||
ended June 30 | ended June 30 | ||||||||||||||||||
2018 | 2019 | 2019 | 2018 | 2019 | 2019 | ||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Net income | 748,077 | 731,108 | 106,498 | 1,570,256 | 1,017,666 | 148,241 | |||||||||||||
Other comprehensive income | |||||||||||||||||||
Foreign currency translation | 156,015 | 40,899 | 5,958 | 67,722 | (32,082) | (4,673) | |||||||||||||
Comprehensive income | 904,092 | 772,007 | 112,456 | 1,637,978 | 985,584 | 143,568 | |||||||||||||
Less: comprehensive (loss) | (1,061) | 2,271 | 331 | (4,037) | (2,963) | (432) | |||||||||||||
Comprehensive income | 905,153 | 769,736 | 112,125 | 1,642,015 | 988,547 | 144,000 | |||||||||||||
Momo Inc. | |||||
Unaudited Condensed Consolidated Balance Sheets | |||||
(All amounts in thousands, except share and per share data) | |||||
December 31 | June 30 | June 30 | |||
2018 | 2019 | 2019 | |||
RMB | RMB | US$ | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 2,468,034 | 1,735,743 | 252,839 | ||
Term deposits | 8,824,610 | 10,664,100 | 1,553,401 | ||
Short-term investment | - | 90,000 | 13,110 | ||
Accounts receivable, net of allowance for doubtful accounts of RMB | 719,606 | 275,171 | 40,083 | ||
Amounts due from a related party | - | 271 | 39 | ||
Prepaid expenses and other current assets | 620,979 | 627,007 | 91,333 | ||
Total current assets | 12,633,229 | 13,392,292 | 1,950,805 | ||
Property and equipment, net | 387,532 | 368,503 | 53,679 | ||
Intangible assets | 1,036,986 | 956,954 | 139,396 | ||
Rental deposits | 24,192 | 26,586 | 3,873 | ||
Long-term investments | 447,465 | 476,836 | 69,459 | ||
Deferred tax assets | 57,786 | 31,679 | 4,615 | ||
Other non-current assets | 71,519 | 18,768 | 2,734 | ||
Right-of-use assets, net[1] | - | 194,126 | 28,278 | ||
Goodwill | 4,306,829 | 4,300,285 | 626,407 | ||
Total assets | 18,965,538 | 19,766,029 | 2,879,246 | ||
Liabilities and equity | |||||
Current liabilities | |||||
Accounts payable | 718,362 | 778,682 | 113,427 | ||
Deferred revenue | 441,892 | 411,970 | 60,011 | ||
Accrued expenses and other current liabilities | 846,710 | 672,261 | 97,925 | ||
Amount due to related parties | 82,948 | 39,921 | 5,815 | ||
Income tax payable | 137,090 | 130,103 | 18,952 | ||
Lease liabilities due within one year[1] | - | 103,648 | 15,098 | ||
Deferred consideration in connection with business acquisitions | 469,274 | 83,916 | 12,224 | ||
Total current liabilities | 2,696,276 | 2,220,501 | 323,452 | ||
Deferred tax liabilities | 259,247 | 239,238 | 34,849 | ||
Convertible senior notes | 4,877,116 | 4,877,214 | 710,446 | ||
Share-based compensation liability | 86,767 | 887,511 | 129,281 | ||
Lease liabilities1 | - | 85,582 | 12,466 | ||
Other non-current liabilities | 23,273 | 29,795 | 4,340 | ||
Total liabilities | 7,942,679 | 8,339,841 | 1,214,834 | ||
Shareholder's equity (i) | 11,022,859 | 11,426,188 | 1,664,412 | ||
Total liabilities and shareholder's equity | 18,965,538 | 19,766,029 | 2,879,246 | ||
(i): As of June 30, 2019, the number of ordinary shares issued and outstanding was 415,264,580. | |||||
[1] On January 1, 2019, the Company adopted ASU 2016-02, the new lease standard, using the modified retrospective basis and did not restate comparative periods. | |||||
Momo Inc. | |||||||||||
Unaudited Condensed Consolidated Statement of Cash Flows | |||||||||||
(All amounts in thousands, except share and per share data) | |||||||||||
Three months | First half year | ||||||||||
ended June 30 | ended June 30 | ||||||||||
2018 | 2019 | 2019 | 2018 | 2019 | 2019 | ||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||
Cash flows from operating activities: | |||||||||||
Net income | 748,077 | 731,108 | 106,498 | 1,570,256 | 1,017,666 | 148,241 | |||||
Adjustments to reconcile net income to net cash provided | |||||||||||
Depreciation of property and equipment | 35,110 | 48,236 | 7,026 | 66,582 | 96,636 | 14,077 | |||||
Amortization of intangible assets | 13,145 | 39,020 | 5,684 | 14,578 | 77,615 | 11,306 | |||||
Share-based compensation | 134,177 | 482,537 | 70,290 | 212,841 | 1,075,611 | 156,680 | |||||
Share of income on equity method investments | (10,789) | (6,375) | (929) | (18,915) | (1,871) | (273) | |||||
Impairment loss on long-term investments | - | - | - | - | 4,500 | 655 | |||||
Loss (income) on disposal of property and equipment | - | (338) | (49) | 2 | (334) | (49) | |||||
Provision of allowance for doubtful accounts | (585) | 9,309 | 1,356 | (585) | 9,309 | 1,356 | |||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 11,112 | 25,712 | 3,745 | 64,344 | 435,126 | 63,383 | |||||
Prepaid expenses and other current assets | 33,204 | 19,385 | 2,824 | 89,691 | 1,196 | 174 | |||||
Amount due from related parties | 27,452 | (271) | (39) | 20,028 | (271) | (39) | |||||
Rental deposits | 486 | (1,078) | (157) | 822 | (2,395) | (349) | |||||
Deferred tax assets | 20,606 | 570 | 83 | 28,571 | 26,107 | 3,803 | |||||
Other non-current assets | (26,670) | (18,796) | (2,738) | (38,194) | 12,643 | 1,842 | |||||
Accounts payable | 37,339 | 55,573 | 8,095 | 93,698 | 88,088 | 12,831 | |||||
Income tax payable | (38,795) | 64,570 | 9,406 | (103,161) | (6,988) | (1,018) | |||||
Deferred revenue | (25,729) | (48,764) | (7,103) | (59,320) | (29,922) | (4,359) | |||||
Accrued expenses and other current liabilities | 38,250 | 43,872 | 6,391 | (130,853) | (141,623) | (20,630) | |||||
Amount due to related parties | 451 | (16,752) | (2,440) | 419 | (42,717) | (6,222) | |||||
Deferred tax liability | (3,286) | (9,755) | (1,421) | (3,644) | (25,297) | (3,685) | |||||
Other non-current liabilities | (1,160) | 4,201 | 612 | 10,691 | 4,794 | 698 | |||||
Net cash provided by operating activities | 992,395 | 1,421,964 | 207,134 | 1,817,851 | 2,597,873 | 378,422 | |||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (25,938) | (41,682) | (6,072) | (90,201) | (94,480) | (13,763) | |||||
Proceeds from disposal of property and equipment | 1 | 505 | 75 | 10 | 510 | 75 | |||||
Payment for long-term investments | (50,125) | (12,000) | (1,748) | (54,125) | (24,000) | (3,496) | |||||
Prepayment of long-term investments | - | (15,000) | (2,185) | (47,000) | (15,000) | (2,185) | |||||
Payment for business acquisition, net of cash acquired | (1,818,146) | (73,681) | (10,733) | (3,278,209) | (378,748) | (55,171) | |||||
Purchase of term deposits | (3,932,638) | (6,230,000) | (907,502) | (7,569,230) | (9,715,005) | (1,415,150) | |||||
Cash received on maturity of term deposits | 4,839,433 | 4,860,025 | 707,942 | 7,222,393 | 7,865,030 | 1,145,671 | |||||
Payment for short-term investments | - | (40,000) | (5,827) | - | (250,000) | (36,417) | |||||
Cash received from sales of short-term investment | - | 60,000 | 8,740 | 10,500 | 160,000 | 23,307 | |||||
Net cash used in investing activities | (987,413) | (1,491,833) | (217,310) | (3,805,862) | (2,451,693) | (357,129) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from exercise of options | 55 | 32 | 5 | 2,492 | 115 | 17 | |||||
Deferred payment of purchase of property and equipment | (1,078) | - | - | (8,405) | (94) | (14) | |||||
Dividends payment | - | (877,346) | (127,800) | - | (877,346) | (127,800) | |||||
Proceeds from bank loan | 1,913,190 | - | - | 1,913,190 | - | - | |||||
Net cash provided by (used in) financing activities | 1,912,167 | (877,314) | (127,795) | 1,907,277 | (877,325) | (127,797) | |||||
Effect of exchange rate changes | 23,222 | 4,584 | 665 | 8,286 | (1,146) | (167) | |||||
Net increase (decrease) in cash, cash equivalents, and | 1,940,371 | (942,599) | (137,306) | (72,448) | (732,291) | (106,671) | |||||
Cash, cash equivalents, and restricted cash at beginning of | 2,449,375 | 2,678,342 | 390,145 | 4,462,194 | 2,468,034 | 359,510 | |||||
Cash, cash equivalents, and restricted cash at end of period | 4,389,746 | 1,735,743 | 252,839 | 4,389,746 | 1,735,743 | 252,839 | |||||
Momo Inc. | ||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP financial measures to comparable GAAP measures | ||||||||||||||||||||||||||||||||
(All amounts in thousands, except per share data) | ||||||||||||||||||||||||||||||||
1. | Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures. | |||||||||||||||||||||||||||||||
Three months | Three months | Three months | ||||||||||||||||||||||||||||||
ended June 30, 2018 | ended June 30, 2019 | ended June 30, 2019 | ||||||||||||||||||||||||||||||
GAAP RMB | Amortization | Share- RMB | Tax (ii) | Non-GAAP RMB | GAAP RMB | Amortization | Share- RMB | Tax (ii) RMB | Non-GAAP RMB | GAAP US$ | Amortization of US$ | Share- US$ | Tax (ii) US$ | Non-GAAP US$ | ||||||||||||||||||
Cost of revenues | (1,720,340) | 5,682 | 7,246 | - | (1,707,412) | (2,063,863) | 18,227 | 5,447 | - | (2,040,189) | (300,636) | 2,656 | 793 | - | (297,187) | |||||||||||||||||
Research and development | (160,097) | 721 | 43,313 | - | (116,063) | (251,658) | 2,315 | 44,523 | - | (204,820) | (36,658) | 337 | 6,486 | - | (29,835) | |||||||||||||||||
Sales and marketing | (348,722) | 5,312 | 34,552 | - | (308,858) | (570,609) | 17,045 | 51,293 | - | (502,271) | (83,119) | 2,483 | 7,472 | - | (73,164) | |||||||||||||||||
General and | (127,665) | - | 49,066 | - | (78,599) | (500,660) | - | 381,274 | - | (119,386) | (72,929) | - | 55,539 | - | (17,390) | |||||||||||||||||
Cost and operating expenses | (2,356,824) | 11,715 | 134,177 | - | (2,210,932) | (3,386,790) | 37,587 | 482,537 | - | (2,866,666) | (493,342) | 5,476 | 70,290 | - | (417,576) | |||||||||||||||||
Income from operations | 895,782 | 11,715 | 134,177 | - | 1,041,674 | 927,741 | 37,587 | 482,537 | - | 1,447,865 | 135,141 | 5,476 | 70,290 | - | 210,907 | |||||||||||||||||
Net income attributable to | 750,244 | 11,715 | 134,177 | (2,927) | 893,209 | 731,777 | 37,587 | 482,537 | (9,397) | 1,242,504 | 106,595 | 5,476 | 70,290 | (1,369) | 180,992 | |||||||||||||||||
Momo Inc. | ||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP financial measures to comparable GAAP measures | ||||||||||||||||||||||||||||||||
(All amounts in thousands, except per share data) | ||||||||||||||||||||||||||||||||
1. | Reconciliation of Non-GAAP cost and operating expenses, income from operations, and net income to comparable GAAP measures-continued. | |||||||||||||||||||||||||||||||
First half year | First half year | First half year | ||||||||||||||||||||||||||||||
ended June 30, 2018 | ended June 30, 2019 | ended June 30, 2019 | ||||||||||||||||||||||||||||||
GAAP RMB | Amortization | Share- RMB | Tax (ii) | Non-GAAP RMB | GAAP RMB | Amortization | Share- RMB | Tax (ii) RMB | Non-GAAP RMB | GAAP US$ | Amortization US$ | Share- US$ | Tax I (ii) US$ | Non-GAAP US$ | ||||||||||||||||||
Cost of revenues | (3,051,980) | 5,682 | 10,283 | - | (3,036,015) | (3,937,437) | 36,248 | 9,633 | - | (3,891,556) | (573,552) | 5,280 | 1,403 | - | (566,869) | |||||||||||||||||
Research and | (271,483) | 721 | 59,672 | - | (211,090) | (501,089) | 4,604 | 84,253 | - | (412,232) | (72,992) | 671 | 12,273 | - | (60,048) | |||||||||||||||||
Sales and marketing | (630,430) | 5,312 | 55,460 | - | (569,658) | (1,194,457) | 33,898 | 90,745 | - | (1,069,814) | (173,992) | 4,938 | 13,218 | - | (155,836) | |||||||||||||||||
General and | (237,134) | - | 87,426 | - | (149,708) | (1,103,256) | - | 890,980 | - | (212,276) | (160,707) | - | 129,786 | - | (30,921) | |||||||||||||||||
Cost and operating | (4,191,027) | 11,715 | 212,841 | - | (3,966,471) | (6,736,239) | 74,750 | 1,075,611 | - | (5,585,878) | (981,243) | 10,889 | 156,680 | - | (813,674) | |||||||||||||||||
Income from operations | 1,832,859 | 11,715 | 212,841 | - | 2,057,415 | 1,312,165 | 74,750 | 1,075,611 | - | 2,462,526 | 191,139 | 10,889 | 156,680 | - | 358,708 | |||||||||||||||||
Net income attributable to | 1,575,399 | 11,715 | 212,841 | (2,927) | 1,797,028 | 1,021,094 | 74,750 | 1,075,611 | (18,688) | 2,152,767 | 148,740 | 10,889 | 156,680 | (2,723) | 313,586 | |||||||||||||||||
(ii) Includes tax impacts related to the amortization of intangible assets from business acquisition. There is no tax impact related to share-based compensation. | ||||||||||||||||||||||||||||||||
Momo Inc. | |||||||||
Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
Three months | |||||||||
ended June 30, 2019 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Net revenues: | |||||||||
Live video service | 3,099,887 | - | - | 3,099,887 | 451,549 | ||||
Value-added service | 663,601 | 284,793 | - | 948,394 | 138,149 | ||||
Mobile marketing | 76,208 | - | - | 76,208 | 11,101 | ||||
Mobile games | 23,240 | - | - | 23,240 | 3,385 | ||||
Other services | 2,452 | - | 2,449 | 4,901 | 715 | ||||
Total net revenues | 3,865,388 | 284,793 | 2,449 | 4,152,630 | 604,899 | ||||
Cost and expenses (iii): | |||||||||
Cost of revenues | (1,970,672) | (89,362) | (3,829) | (2,063,863) | (300,636) | ||||
Research and development | (181,866) | (69,792) | - | (251,658) | (36,658) | ||||
Sales and marketing | (356,578) | (212,628) | (1,403) | (570,609) | (83,119) | ||||
General and administrative | (142,384) | (344,434) | (13,842) | (500,660) | (72,929) | ||||
Total cost and expenses | (2,651,500) | (716,216) | (19,074) | (3,386,790) | (493,342) | ||||
Other operating income | 140,535 | - | 21,366 | 161,901 | 23,584 | ||||
Income (loss) from operations | 1,354,423 | (431,423) | 4,741 | 927,741 | 135,141 | ||||
Interest income | 97,118 | 3,024 | 33 | 100,175 | 14,592 | ||||
Interest expense | (19,315) | - | - | (19,315) | (2,814) | ||||
Income (loss) before income tax | 1,432,226 | (428,399) | 4,774 | 1,008,601 | 146,919 | ||||
Income tax (expenses) benefits | (289,101) | 5,233 | - | (283,868) | (41,350) | ||||
Income (loss) before share of | 1,143,125 | (423,166) | 4,774 | 724,733 | 105,569 | ||||
Share of income on equity method | 6,375 | - | - | 6,375 | 929 | ||||
Net income (loss) | 1,149,500 | (423,166) | 4,774 | 731,108 | 106,498 | ||||
(iii) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
Three months | |||||||||
ended June 30, 2019 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 4,870 | 577 | - | 5,447 | 793 | ||||
Research and development | 27,587 | 16,936 | - | 44,523 | 6,486 | ||||
Sales and marketing | 47,381 | 3,912 | - | 51,293 | 7,472 | ||||
General and administrative | 54,235 | 324,479 | 2,560 | 381,274 | 55,539 | ||||
Total cost and expenses | 134,073 | 345,904 | 2,560 | 482,537 | 70,290 | ||||
Momo Inc. | |||||||||
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
Three months | |||||||||
ended June 30, 2019 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Operating income (loss) | 1,354,423 | (431,423) | 4,741 | 927,741 | 135,141 | ||||
Share-based compensation | 134,073 | 345,904 | 2,560 | 482,537 | 70,290 | ||||
Amortization of intangible assets from | - | 37,587 | - | 37,587 | 5,476 | ||||
Non-GAAP operating income (loss) | 1,488,496 | (47,932) | 7,301 | 1,447,865 | 210,907 | ||||
Net income (loss) | 1,149,500 | (423,166) | 4,774 | 731,108 | 106,498 | ||||
Share-based compensation | 134,073 | 345,904 | 2,560 | 482,537 | 70,290 | ||||
Amortization of intangible assets from | - | 37,587 | - | 37,587 | 5,476 | ||||
Tax impacts | - | (9,397) | - | (9,397) | (1,369) | ||||
Non-GAAP net income (loss) | 1,283,573 | (49,072) | 7,334 | 1,241,835 | 180,895 | ||||
Momo Inc. | |||||||||
Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
Three months | |||||||||
ended June 30, 2018 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$[2] | |||||
Net revenues: | |||||||||
Live video service | 2,620,924 | - | - | 2,620,924 | 396,083 | ||||
Value-added service | 321,614 | 30,969 | - | 352,583 | 53,284 | ||||
Mobile marketing | 141,984 | - | - | 141,984 | 21,457 | ||||
Mobile games | 34,782 | - | - | 34,782 | 5,256 | ||||
Other services | 453 | - | 1,805 | 2,258 | 341 | ||||
Total net revenues | 3,119,757 | 30,969 | 1,805 | 3,152,531 | 476,421 | ||||
Cost and expenses (iv): | |||||||||
Cost of revenues | (1,541,843) | (18,731) | (159,766) | (1,720,340) | (259,984) | ||||
Research and development | (132,044) | (28,053) | - | (160,097) | (24,194) | ||||
Sales and marketing | (275,920) | (67,703) | (5,099) | (348,722) | (52,700) | ||||
General and administrative | (110,690) | (14,304) | (2,671) | (127,665) | (19,293) | ||||
Total cost and expenses | (2,060,497) | (128,791) | (167,536) | (2,356,824) | (356,171) | ||||
Other operating income | 100,014 | 61 | - | 100,075 | 15,124 | ||||
Income (loss) from operations | 1,159,274 | (97,761) | (165,731) | 895,782 | 135,374 | ||||
Interest income | 52,466 | 64 | 17 | 52,547 | 7,941 | ||||
Interest expense | (12,436) | - | - | (12,436) | (1,879) | ||||
Income (loss) before income tax and share | 1,199,304 | (97,697) | (165,714) | 935,893 | 141,436 | ||||
Income tax (expenses) benefits | (201,533) | 2,928 | - | (198,605) | (30,014) | ||||
Income (loss) before share of income on | 997,771 | (94,769) | (165,714) | 737,288 | 111,422 | ||||
Share of income on equity method investments | 10,789 | - | - | 10,789 | 1,631 | ||||
Net income (loss) | 1,008,560 | (94,769) | (165,714) | 748,077 | 113,053 | ||||
[2] All translations from RMB to U.S. dollars are made at a rate of RMB 6.6171 to US$1.00, the effective noon buying rate for June 29, 2018 | |||||||||
(iv) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
Three months | |||||||||
ended June 30, 2018 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 5,300 | 1,946 | - | 7,246 | 1,095 | ||||
Research and development | 24,559 | 18,754 | - | 43,313 | 6,546 | ||||
Sales and marketing | 30,783 | 3,769 | - | 34,552 | 5,222 | ||||
General and administrative | 38,997 | 10,069 | - | 49,066 | 7,415 | ||||
Total cost and expenses | 99,639 | 34,538 | - | 134,177 | 20,278 | ||||
Momo Inc. | |||||||||
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
Three months | |||||||||
ended June 30, 2018 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Operating income (loss) | 1,159,274 | (97,761) | (165,731) | 895,782 | 135,374 | ||||
Share-based compensation | 99,639 | 34,538 | - | 134,177 | 20,278 | ||||
Amortization of intangible assets from | - | 11,715 | - | 11,715 | 1,770 | ||||
Non-GAAP operating income (loss) | 1,258,913 | (51,508) | (165,731) | 1,041,674 | 157,422 | ||||
Net income (loss) | 1,008,560 | (94,769) | (165,714) | 748,077 | 113,053 | ||||
Share-based compensation | 99,639 | 34,538 | - | 134,177 | 20,278 | ||||
Amortization of intangible assets from | - | 11,715 | - | 11,715 | 1,770 | ||||
Tax impacts | - | (2,927) | - | (2,927) | (442) | ||||
Non-GAAP net income (loss) | 1,108,199 | (51,443) | (165,714) | 891,042 | 134,659 | ||||
Momo Inc. | |||||||||
Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
First half year | |||||||||
ended June 30, 2019 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Net revenues: | |||||||||
Live video service | 5,789,300 | - | - | 5,789,300 | 843,307 | ||||
Value-added service | 1,272,103 | 580,140 | - | 1,852,243 | 269,810 | ||||
Mobile marketing | 156,937 | - | - | 156,937 | 22,860 | ||||
Mobile games | 62,248 | - | - | 62,248 | 9,067 | ||||
Other services | 4,009 | - | 10,812 | 14,821 | 2,159 | ||||
Total net revenues | 7,284,597 | 580,140 | 10,812 | 7,875,549 | 1,147,203 | ||||
Cost and expenses (v): | |||||||||
Cost of revenues | (3,740,710) | (188,218) | (8,509) | (3,937,437) | (573,552) | ||||
Research and development | (366,139) | (134,950) | - | (501,089) | (72,992) | ||||
Sales and marketing | (719,536) | (468,549) | (6,372) | (1,194,457) | (173,992) | ||||
General and administrative | (256,648) | (824,399) | (22,209) | (1,103,256) | (160,707) | ||||
Total cost and expenses | (5,083,033) | (1,616,116) | (37,090) | (6,736,239) | (981,243) | ||||
Other operating income | 151,489 | - | 21,366 | 172,855 | 25,179 | ||||
Income (loss) from operations | 2,353,053 | (1,035,976) | (4,912) | 1,312,165 | 191,139 | ||||
Interest income | 187,976 | 5,915 | 62 | 193,953 | 28,252 | ||||
Interest expense | (38,304) | - | - | (38,304) | (5,580) | ||||
Impairment loss on long-term | (4,500) | - | - | (4,500) | (655) | ||||
Income (loss) before income tax | 2,498,225 | (1,030,061) | (4,850) | 1,463,314 | 213,156 | ||||
Income tax (expenses) benefits | (456,704) | 9,185 | - | (447,519) | (65,188) | ||||
Income (loss) before share of | 2,041,521 | (1,020,876) | (4,850) | 1,015,795 | 147,968 | ||||
Share of income on equity method | 1,871 | - | - | 1,871 | 273 | ||||
Net income (loss) | 2,043,392 | (1,020,876) | (4,850) | 1,017,666 | 148,241 | ||||
(v) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
First half year | |||||||||
ended June 30, 2019 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 8,476 | 1,157 | - | 9,633 | 1,403 | ||||
Research and development | 49,300 | 34,953 | - | 84,253 | 12,273 | ||||
Sales and marketing | 82,855 | 7,890 | - | 90,745 | 13,218 | ||||
General and administrative | 93,726 | 792,163 | 5,091 | 890,980 | 129,786 | ||||
Total cost and expenses | 234,357 | 836,163 | 5,091 | 1,075,611 | 156,680 | ||||
Momo Inc. | |||||||||
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
First half year | |||||||||
ended June 30, 2019 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Operating income (loss) | 2,353,053 | (1,035,976) | (4,912) | 1,312,165 | 191,139 | ||||
Share-based compensation | 234,357 | 836,163 | 5,091 | 1,075,611 | 156,680 | ||||
Amortization of intangible assets | - | 74,750 | - | 74,750 | 10,889 | ||||
Non-GAAP operating income | 2,587,410 | (125,063) | 179 | 2,462,526 | 358,708 | ||||
Net income (loss) | 2,043,392 | (1,020,876) | (4,850) | 1,017,666 | 148,241 | ||||
Share-based compensation | 234,357 | 836,163 | 5,091 | 1,075,611 | 156,680 | ||||
Amortization of intangible assets | - | 74,750 | - | 74,750 | 10,889 | ||||
Tax impacts | - | (18,688) | - | (18,688) | (2,723) | ||||
Non-GAAP net income (loss) | 2,277,749 | (128,651) | 241 | 2,149,339 | 313,087 | ||||
Momo Inc. | |||||||||
Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
First half year | |||||||||
ended June 30, 2018 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Net revenues: | |||||||||
Live video service | 4,981,038 | - | - | 4,981,038 | 752,752 | ||||
Value-added service | 556,618 | 30,969 | - | 587,587 | 88,798 | ||||
Mobile marketing | 260,842 | - | - | 260,842 | 39,419 | ||||
Mobile games | 77,010 | - | - | 77,010 | 11,638 | ||||
Other services | 2,506 | - | 7,924 | 10,430 | 1,576 | ||||
Total net revenues | 5,878,014 | 30,969 | 7,924 | 5,916,907 | 894,183 | ||||
Cost and expenses (vi): | |||||||||
Cost of revenues | (2,869,214) | (18,731) | (164,035) | (3,051,980) | (461,226) | ||||
Research and development | (243,430) | (28,053) | - | (271,483) | (41,027) | ||||
Sales and marketing | (554,710) | (67,703) | (8,017) | (630,430) | (95,273) | ||||
General and administrative | (217,714) | (14,304) | (5,116) | (237,134) | (35,837) | ||||
Total cost and expenses | (3,885,068) | (128,791) | (177,168) | (4,191,027) | (633,363) | ||||
Other operating income | 106,918 | 61 | - | 106,979 | 16,167 | ||||
Income (loss) from operations | 2,099,864 | (97,761) | (169,244) | 1,832,859 | 276,987 | ||||
Interest income | 100,361 | 64 | 27 | 100,452 | 15,181 | ||||
Interest expense | (12,436) | - | - | (12,436) | (1,879) | ||||
Income (loss) before income tax and share | 2,187,789 | (97,697) | (169,217) | 1,920,875 | 290,289 | ||||
Income tax (expenses) benefits | (372,462) | 2,928 | - | (369,534) | (55,845) | ||||
Income (loss) before share of income on | 1,815,327 | (94,769) | (169,217) | 1,551,341 | 234,444 | ||||
Share of income on equity method investments | 18,915 | - | - | 18,915 | 2,859 | ||||
Net income (loss) | 1,834,242 | (94,769) | (169,217) | 1,570,256 | 237,303 | ||||
(vi) Share-based compensation was allocated in cost of revenues and operating expenses as follows: | |||||||||
First half year | |||||||||
ended June 30, 2018 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Cost of revenues | 8,337 | 1,946 | - | 10,283 | 1,554 | ||||
Research and development | 40,918 | 18,754 | - | 59,672 | 9,018 | ||||
Sales and marketing | 51,691 | 3,769 | - | 55,460 | 8,381 | ||||
General and administrative | 77,357 | 10,069 | - | 87,426 | 13,212 | ||||
Total cost and expenses | 178,303 | 34,538 | - | 212,841 | 32,165 | ||||
Momo Inc. | |||||||||
Reconciliation of GAAP and NON-GAAP Results of Unaudited Segment Report | |||||||||
(All amounts in thousands, except share and per share data) | |||||||||
First half year | |||||||||
ended June 30, 2018 | |||||||||
Momo | Tantan | QOOL | Total | Total | |||||
RMB | RMB | RMB | RMB | US$ | |||||
Operating income (loss) | 2,099,864 | (97,761) | (169,244) | 1,832,859 | 276,987 | ||||
Share-based compensation | 178,303 | 34,538 | - | 212,841 | 32,165 | ||||
Amortization of intangible assets from | - | 11,715 | - | 11,715 | 1,770 | ||||
Non-GAAP operating income (loss) | 2,278,167 | (51,508) | (169,244) | 2,057,415 | 310,922 | ||||
Net income (loss) | 1,834,242 | (94,769) | (169,217) | 1,570,256 | 237,303 | ||||
Share-based compensation | 178,303 | 34,538 | - | 212,841 | 32,165 | ||||
Amortization of intangible assets from | - | 11,715 | - | 11,715 | 1,770 | ||||
Tax impacts | - | (2,927) | - | (2,927) | (442) | ||||
Non-GAAP net income (loss) | 2,012,545 | (51,443) | (169,217) | 1,791,885 | 270,796 | ||||
SOURCE Momo Inc.
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